PepsiCo Stock Gets a Boost on Beat-and-Raise

Options traders are targeting PepsiCo stock at an elevated clip

Digital Content Manager
Jul 12, 2022 at 10:03 AM
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PepsiCo, Inc. (NASDAQ:PEP) kicked off another busy earnings season with second quarter earnings of $1.86 per share, which topped analysts' estimates of $1.74 per share. The beverage giant's revenue also beat estimates. PepsiCo also lifted its full-year forecast, noting strong demand for its sodas and snacks despite the rising cost of goods. At last glance, PEP is up 1.4% at $172.88. 

A closer look at the charts shows the equity's recent rally off the $154 level, with additional assistance from the 10-day moving average. This positive price action has PEP at a 14% year-over-year lead, though its year-to-date breakeven near the $174 region remains elusive for the stock. 

When we last looked in on PEP, the equity the stock was struggling to capitalize on a bull note from Deutsche Bank. While analysts have remained silent today, the majority of those in coverage are optimistic on the stock, with nine at a "strong buy" rating, compared to just three "holds." Meanwhile, the 12-month consensus price target of $182.11 is a slim 6.8% premium to current levels, which could leave room for more price-target hikes. 

Options traders are targeting PEP at an elevated clip today. So far, 7,038 calls and 6,936 puts have exchanged hands, which is nine times the intraday average. The most popular position is the July 175 call, followed by the 150 put in the same series. 

 

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